Hussion v. Madigan

950 F.2d 1546, 1992 WL 1702
CourtCourt of Appeals for the Eleventh Circuit
DecidedJanuary 24, 1992
DocketNo. 90-8873
StatusPublished
Cited by9 cases

This text of 950 F.2d 1546 (Hussion v. Madigan) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hussion v. Madigan, 950 F.2d 1546, 1992 WL 1702 (11th Cir. 1992).

Opinion

BIRCH, Circuit Judge:

In this appeal we consider whether the district court erred in holding that it was arbitrary and capricious for the Farmers Home Administration (“FmHA” or “Agency”) to eliminate administrative review of lease terminations and evictions in FmHA-financed housing. In 1983, the FmHA altered the appeal process applicable to lease termination and eviction cases by substituting state judicial process in place of the previously established administrative review procedure. The regulations, as modified, now provide that landlords in FmHA program housing may evict a tenant only for a “material violation of the lease terms or for other good cause” in a “judicial action pursuant to State or local law.” 7 C.F.R. § 1944.553(f) (1991). Our review discloses that the FmHA’s 1983 amendment to its regulations was entirely consistent with the enabling act authorizing the FmHA housing program at issue, and that the Agency’s action clearly was not arbitrary and capricious under the Administrative Procedure Act (“APA”). See 5 U.S.C. 706(2)(A) (1988). Accordingly, we REVERSE the judgment of the district court.

I. BACKGROUND

A. The Relevant Facts

In 1986, appellees Brenda Hussion and Julie Wright were tenants in the Douglass Village Apartments, a housing project financed by the FmHA and subsidized by the Department of Housing and Urban Development (“HUD”).1 The FmHA financed the complex as part of a program to provide low income apartment units in rural areas. See 42 U.S.C. § 1485 (1988). In this program and similar housing projects, the rent of tenants is calculated, pursuant to federal requirements, to equal 30% of monthly adjusted family income. See 42 U.S.C. § 1437f(o )(ll)(B)(ii) (1988); 24 C.F.R. § 813.107(a)(1) (1991). The present dispute arose from the failure of Douglass Village Apartments to participate in a grievance procedure to resolve problems with Hussion’s and Wright’s tenancies. In both cases, the tenancies were terminated based on non-payment of rent, following a disputed assessment of family income and a resulting miscalculation of rent.

Hussion and Wright sought to invoke the FmHA’s informal grievance procedure to resolve the issues surrounding their lease terminations. When the owners of the complex declined to participate in any informal dispute resolution process, they sued to enforce their rights to grievance hearings as provided by relevant regulations. Although their original complaint involved other adverse actions in addition to eviction, the appellees were prompted to challenge in the same law suit the FmHA’s decision to abolish the right to have an administrative hearing prior to eviction. In this connection, they instituted the present action on behalf of themselves and others similarly situated against Richard E. Lyng in his official capacity as the Secretary of the Department of Agriculture,2 and Vance Clark as Administrator of the FmHA, seeking to enjoin enforcement of a 1983 amendment to the FmHA’s tenant grievance and [1549]*1549appeals procedure regulations.3 See 7 C.F.R. § 1944.551-559 (1991). The complaint alleged that this amendment, designed to streamline the grievance process in cases of lease terminations and evictions, see 47 Fed.Reg. 17,300 (1982), was adopted in violation of the enabling act. See 42 U.S.C. § 1480(g) (1988). In addition, the complaint stated that the amendment had been promulgated in an arbitrary and capricious manner in violation of the APA. See 5 U.S.C. § 706(2)(A) (1988).

B. The History of the Relevant Regulations

The FmHA first proposed the contested revision to the tenant grievance and appeals procedure regulations in 1982. Prior to this time, the grievance procedure had been governed by regulations originally adopted in 1979 which provided for informal meetings to settle disputes between landlords and tenants. See 7 C.F.R. § 1944.555 (1991). Under those regulations, if the informal meeting failed to yield a settlement, the dispute was committed to an administrative hearing process in which an impartial officer or three-member panel would review the evidence and render a written decision, subject to review by the district director of the FmHA. Id. §§ 1944.556(b), .558(b). In 1980, the grievance and appeals procedure regulations were amended to exclude from the process those cases of evictions for failure to pay rent, as well as cases in which “a tenant’s continued occupancy constitutes an imminent threat to the health or safety of other residents or management employees,” as long as eviction was pursued through state law. 45 Fed.Reg. 70,841, 70,843 (1980). Concurrent with these changes, the FmHA implemented the requirement that a termination must be for a “material violation of the lease terms or for other good cause.” 7 C.F.R. pt. 1930, subpt. C, exh. B, para. XIV(B) (1991). The FmHA also amended the regulations to provide that the determination reached in the FmHA grievance and appeals process “does not preclude either party’s right thereafter to seek judicial relief through the courts.” 7 C.F.R. § 1944.-558(b) (1991).

Concerns about the burdens of this multi-layered process prompted the FmHA to propose revisions in 1982 intended to remove eviction actions governed by state law from the grievance process. The FmHA also proposed that a direct review of the outcome of the informal meeting by the district director be substituted for the existing review hearing conducted by a hearing officer or panel. See 47 Fed.Reg. 17,300, 17,301-02 (1982). In particular, the FmHA was concerned that unpaid hearing officers with suitable qualifications were difficult to secure in rural areas and that the costs of retaining such persons for pay would burden all tenants in the form of higher rents. Id. at 17,300. Hence, the FmHA sought to modify the rules to minimize potential economic burdens inuring to participants in program housing. The Agency published notice of the proposed rulemaking, collected comments, invited the commenting parties to extend and clarify their comments, and summarized the positions urged by opponents and proponents before issuing its final rule in December 1983. See 48 Fed.Reg. 56,175, 56,-175-77 (1983).

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Hussion v. Madigan
950 F.2d 1546 (Eleventh Circuit, 1992)

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Bluebook (online)
950 F.2d 1546, 1992 WL 1702, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hussion-v-madigan-ca11-1992.